The RealPage Rent Ruling: A Landlord’s Algorithm or Antitrust Crisis?

The New Jersey Attorney General’s lawsuit against RealPage Inc. (RLP) and its landlord clients has ignited a fierce debate over the role of technology in housing markets—and its implications for investors. At its core, the case accuses RealPage’s revenue management software of enabling a nationwide conspiracy to artificially inflate rents, leveraging data-sharing and algorithmic pricing to suppress competition. The lawsuit, which seeks to dismantle what it calls a “de facto rental monopoly,” raises critical questions about liability for tech-driven collusion, regulatory scrutiny, and the financial risks for RealPage’s shareholders.

Ask Aime: What's the impact of the New Jersey Attorney General's lawsuit on RealPage Inc.'s stock?

The state’s complaint paints a stark picture: RealPage’s platform allegedly allowed landlords to share non-public data—including lease prices, property values, and inventory—through its algorithms, enabling them to coordinate pricing strategies without overt collusion. This, the lawsuit argues, artificially raised rents, pushing half of low-income renters in New Jersey to spend over 30% of their income on housing, a figure widely recognized as unaffordable. RealPage has denied wrongdoing, framing its software as merely offering pricing suggestions. But the legal and reputational stakes are high.

The company now faces over 30 class-action lawsuits and a federal antitrust case led by the U.S. Department of Justice (DOJ). In March 2025, a federal court rejected RealPage’s bid to dismiss the DOJ case, with the agency asserting that its software “fails both factually and legally” to justify its role in market manipulation. Meanwhile, cities like San Diego have banned algorithmic pricing tools entirely, and Arizona’s attorney general has cited staggering rent hikes—76% in Phoenix since 2016—as evidence of RealPage’s influence.

Investors, however, remain divided. shows significant volatility, with shares down nearly 20% since January 2025 amid mounting litigation risks. The company’s parent, private equity firm Thoma Bravo, now faces scrutiny over its $5.3 billion acquisition of RealPage in 2020—a deal that may now look overvalued if liabilities mount.

Critics argue the lawsuits could force RealPage to overhaul its software or pay hefty penalties. The New Jersey case alone seeks restitution of ill-gotten profits, while the DOJ’s broader case could lead to fines or restrictions on data-sharing practices. For context, the DOJ’s 2022 victory against Apple in a antitrust case involving app-store pricing resulted in $500 million in refunds—a fraction of potential penalties here if widespread collusion is proven.

RealPage’s defense hinges on free speech. In its Berkeley lawsuit, the company claims its pricing algorithms are protected as “expressive conduct” under the First Amendment—a strategy that could have far-reaching implications for tech firms. Yet this argument faces skepticism, particularly as courts increasingly scrutinize algorithmic bias. A 2024 ruling in North Carolina v. Google limited such claims in consumer data cases, suggesting RealPage’s legal path may be rocky.

The human toll cannot be ignored. In New Jersey, the lawsuit estimates that 800,000 low-income renters pay unaffordable rents, a crisis exacerbated by RealPage’s alleged practices. “This isn’t just corporate greed—it’s a systemic betrayal,” said New Jersey’s Acting Consumer Affairs Director Jeremy Hollander. For investors, the question is whether RealPage can weather these storms or if its technology will be reined in, altering its business model.

In conclusion, RealPage’s future hinges on the courts’ interpretation of its software’s role in market manipulation. With over 30 lawsuits pending, a federal antitrust case advancing, and mounting public backlash, the risks are substantial. Should the company lose major cases, penalties and operational changes could erode its profitability. Even if it wins, the prolonged legal battles could deter clients and investors.

Financially, RealPage’s valuation—currently around $3.2 billion—may already reflect some downside, but the stock’s price-to-earnings ratio of 24 (vs. 20 for software peers) suggests investors still bet on its resilience. However, with 25% of renters in D.C. spending over 50% of their income on rent, the societal pressure to hold RealPage accountable is growing. For now, the investment calculus is clear: this is a high-risk play, with outcomes hinging on legal outcomes and regulatory shifts that could redefine the boundaries of tech-driven pricing in housing markets.